Greenwich PE firm picks up Minnesota insurance service company

Tim Loh

Published 8:56 pm, Tuesday, June 10, 2014

Stone Point Capital has acquired a Minnesota business in a move that should bolster the Greenwich-based private equity firm's presence in the insurance sector.

Stone Point, which specializes in financial services, did not disclose how much it paid for LTCG, whose business is helping manage complex long-term care portfolios for many of the country's largest insurance companies and providing clients with risk management services.

LTCG was founded in 1996 as Long Term Care Group and is based in the Minneapolis suburb of Eden Prairie.

LTCG has more than 1.4 million long-term care policies under management, or roughly 20 percent of all active policies, the company said in a statement. The firm serves more than 50 national carriers, including all 10 of the biggest in the long-term care market.

"We have known the LTCG business and management team for many years and are delighted to be partnering with them," Chuck Davis, CEO of Stone Point Capital, said in a statement.

Davis added that LTCG is a leader in its field and well-positioned for growth as it develops new ways to add value to customers.

LTCG manages more than 40,000 active claims, paying more than $1.2 billion in benefits during 2013. Its management team has been in place for more than a decade.

Peter Goldstein, co-founder and CEO of LTCG, said in a statement that Stone Point Capital is a good fit.

"They share our vision and see the tremendous opportunity we have to help insurers manage their complex long-term care portfolios," he said.

Stone Point, located at 20 Horseneck Lane, has raised and managed six private equity funds called the "Trident Funds" with aggregate committed capital of more than $13 billion, according to the company.

It has also secured about $7 billion of equity co-investments since 2001, the company said.